Automatic Determination of Interest Calc. Per. in SAP FICO

To ensure that interest calculation periods do not overlap, you can have the interest calculation period determined automatically. This is especially useful if you want to charge interest on accounts at irregular intervals. The interest calculation program then determines which accounts should be included in the respective calculation run.

For some of your accounts you run the interest calculation program every month; for others every three months. This can easily lead to overlaps if you enter the calculation periods manually.

If you want the interest calculation period to be determined automatically, you must carry out the following steps in the system:

• You must enter the interest calculation period. The program needs this information in order to determine whether an account is to be included in this interest calculation run or not until the next run.
• The field Key date of last int.calc in the account master record must have an entry. You can have the batch input make the entry in this field using the upper limit of the last interest calculation run, or you can enter it manually.
• There must also be an interest calculation frequency specified in the master record, providing this has to be determined per account. As an alternative, you can define this frequency under the interest indicator. However, the entry in the master record has higher priority.
• You must have entered an interest calculation day under the interest indicator. For example, if you always want to run the interest calculation program on the 15th of the month, enter this date. However, if you want the run to be on the last day of every month, enter 31.

The system uses this data to determine the upper and lower limit of the interest calculation period.

It does so in the following way: The program adds one day to the data in the field Key date of last int.calc. and uses the result as the lower limit for the interest calculation period.

The upper limit is determined as follows:

• The program determines the month by adding the interest calculation interval (frequency), which you have defined in the system, to the month of the above-mentioned key date.
• The program determines the day by using the interest calculation date defined in the system.

You have defined the following data in the system:

Key date of last int.calc. (interest calculation) 5/31/94
Interest calculation frequency in months 3
Interest calculation day 31

From this data, the system determines a lower limit of 6/1/94 and an upper limit of 8/31/94.

An account is only included in the interest calculation run if the upper limit you specify in the program is not later than the upper limit specified for interest calculation. You can thus carry out the interest calculation independently of the specified frequency with which interest is calculated on the accounts.

The system has determined 8/31/94 as the upper limit for this account. If you are calculating interest for the period 7/1/94 to 8/15/94, the account is ignored. However, if your calculation is for the period 7/1/94 to 9/1/94, the account is included.